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Question 657 - CISM discussion

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An organization is performing due diligence when selecting a third party. Which of the following is MOST helpful to reduce the risk of unauthorized sharing of information during this process?

A.
Using secure communication channels
Answers
A.
Using secure communication channels
B.
Establishing mutual non-disclosure agreements (NDAs)
Answers
B.
Establishing mutual non-disclosure agreements (NDAs)
C.
Requiring third-party privacy policies
Answers
C.
Requiring third-party privacy policies
D.
Obtaining industry references
Answers
D.
Obtaining industry references
Suggested answer: B

Explanation:

The best option to reduce the risk of unauthorized sharing of information during the due diligence process is B. Establishing mutual non-disclosure agreements (NDAs). This is because NDAs are legal contracts that bind the parties to keep confidential any information that is exchanged or disclosed during the due diligence process. NDAs can help to protect the sensitive data, intellectual property, trade secrets, or business strategies of both the organization and the third party from being leaked, stolen, or misused by unauthorized parties. NDAs can also specify the terms and conditions for the use, storage, and disposal of the information, as well as the consequences for breaching the agreement.

Reference = CISM Review Manual 15th Edition, Chapter 3, Section 3.2.1, page 1341; CISM Review Questions, Answers & Explanations Manual 9th Edition, Question 70, page 18

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asked 01/10/2024
Danilo Paolucci
42 questions
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